Cryptocurrency Payments Between Lawyers and Clients Are Under Scrutiny For “Ethical Reasons”
Cryptos are finally getting closer to mainstream adoption, however, this means that they are also entering uncharted territory. Despite this being an important development, several reports affirm that cryptos may have still some legal issues associated with them, which can always be a problem.
AMBCrypto has recently reported a story about how people paying lawyers with crypto are under scrutiny for legal and “ethical” reasons. Some sources cited by the crypto media outlet have affirmed that crypto payments can be an ethical risk for lawyers as cryptos are not fully regulated yet.
Many law firms are accepting cryptocurrencies, but there are several risks associated with that. People from companies like Frost Brown Todd LLC, Steptoe & Johnson LLP, and McLaughlin & Stern LLP have already talked about accepting cryptos. However, they are willing to go to the dangerous territory as there is no consensus about the situation until now.
The deputy general of Latham & Watkins, Mathew K. Roskovski, has told AMBCrypto that some lawyers decided to accept crypto to “look cool”, however, there is a discussion being made on the transference of these assets from client to lawyer. As it does not fit the model for trust funds, lawyers should be somewhat wary of accepting crypto as trust money, he affirmed.
He affirmed that several unspoken rules come into play during a crypto exchange between client and lawyer, so they have to be equally committed to it. Some US states even have laws against that and there are always the topics of appreciation of assets and liquidity to take into account.
Some law firms have also positioned themselves against Initial Coin Offerings (ICOs), saying that the regulation around them is simply too confusing and that they are not worth the hassle as the Securities and Exchange Commission (SEC) is generally very slow to solve the issues related to ICOs and there is a big ambiguity so far.
That’s how the world is. When there is something new, it is bound to have some trouble associated with it. We are sure that situations like this one will be fixed in due time, but it is risky to be paid with BTC just yet.